Metropolis Healthcare Limited Just Missed EPS By 5.7%: Here's What Analysts Think Will Happen Next

It's been a good week for Metropolis Healthcare Limited (NSE:METROPOLIS) shareholders, because the company has just released its latest annual results, and the shares gained 4.2% to ₹1,947. It was a pretty mixed result, with revenues beating expectations to hit ₹12b. Statutory earnings fell 5.7% short of analyst forecasts, reaching ₹24.87 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Metropolis Healthcare

Taking into account the latest results, the consensus forecast from Metropolis Healthcare's 15 analysts is for revenues of ₹13.6b in 2025. This reflects a solid 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 40% to ₹34.86. Before this earnings report, the analysts had been forecasting revenues of ₹13.6b and earnings per share (EPS) of ₹35.75 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Despite cutting their earnings forecasts,the analysts have lifted their price target 6.3% to ₹1,841, suggesting that these impacts are not expected to weigh on the stock's value in the long term. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Metropolis Healthcare, with the most bullish analyst valuing it at ₹2,300 and the most bearish at ₹1,293 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Metropolis Healthcare's growth to accelerate, with the forecast 12% annualised growth to the end of 2025 ranking favourably alongside historical growth of 9.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 15% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Metropolis Healthcare is expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Metropolis Healthcare's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Metropolis Healthcare going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Metropolis Healthcare that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.